Bottoming Pattern
Yesterday Lottery Ticket was a dismal failure as FIT made a full reversal and then gaped down. How rude. Today I’m looking at a nice bottoming pattern with an nice entry signal with upside potential.
PSEC has just recently broken a nasty downtrend and is holding support. The nice candle today suggest buyers are trying to move it higher. As an added bonus the chart is showing a possible Inverted Head and shoulders pattern and a Rounded Bottom Breakout. If your interested take a look at the 19 JAN 6 Calls. A close below the last swing low would be a good reason to exit the trade.
Recently Closed Trades
CSCO 17% • BAC 31% • CREE 48% • WMT 245% • NFLX -40% • STX 42% • 2nd CSCO Trade 30%
Today’s Market Prep Note
Yesterday we saw some selling on worries the Tax Reform bill would not get finished up. This morning sentiment quickly changes as news of a vote and passage could happen as early as today. I hate politically driven markets because as retail traders our edge simply disappears into the spinning black hole of the news cycle. Futures are not pointing to a significant gap up that will put a lot of pressure on those that got short early. Let’s keep in mind that a Dow 25,000 print is not that far away so don’t expect the bulls to give up easily. Perhaps the passage of tax reform is all the fodder needed to encourage the bulls to push higher. I think the road ahead could be a bit bumpier than we have seen this week. Plan carefully and remember to take profits.
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Investing and Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc. is financial or trading advice. All information is intended for Educational Purposes Only. Terms of Service.
Doug Campbell is not a licensed financial adviser, nor does he offer trade recommendations or advice to anyone except for the trading desk of Right Way Options Inc.
News of a Vote
Yesterday we saw some selling on worries the Tax Reform bill would not get finished up. This morning sentiment quickly changes as news of a vote and passage could happen as early as today. I hate politically driven markets because as retail traders our edge simply disappears into the spinning black hole of the news cycle. Futures are not pointing to a significant gap up that will put a lot of pressure on those that got short early. Let’s keep in mind that a Dow 25,000 print is not that far away so don’t expect the bulls to give up easily. Perhaps the passage of tax reform is all the fodder needed to encourage the bulls to push higher. I think the road ahead could be a bit bumpier than we have seen this week. Plan carefully and remember to take profits.
On The Calendar
We kick off this Quadruple Witching Friday Economic Calendar with the Empire State Mfg. Survey at 8:30 AM Eastern. The survey has been running very hot all year which some have warned is at unsustainable levels. Consensus sees a December decline to 18.0 vs. Novembers 19.4 reading. At 9:15 AM is Industrial Production which forecasters see gaining 0.3% in November. We have a couple of mid-day reports that are unlikely to move the market and then Treasury Internation Capital at 4:00 PM that has no forecast.
On the Earnings Calendar, we only have 12 companies reporting none of which are particularly notable. However, have a plan if you happen to own one of these companies.
Action Plan
The market found some sellers yesterday across all 4-major indexes due to the uncertainty surrounding the Tax Reform bill vote. Both the DIA and the SPY left behind bearish engulfing patterns, and I suspect many began to predict a market top placing short positions. During the evening we heard that the conference revised Tax Reform bill will likely get a vote as early today. Plenty of time for the President to sign off on before year-end assuming it passes. Consequently, the futures are responding with bullish glee and early short traders are likely to feel some pain.
Up to this point, this last rally has seen very little volatility, but I would not be surprised to see that change very soon. As we head into the weekend, I normally am more of a profit taker than one looking for additional risk. That’s not likely to change today but never say never. Price is King, and I will follow price action that sets up a good opportunity for profit.
Trade Wisely,
Doug
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Take Profits and Count Your Money
TGIF, Take a few profits and count your money. I love Fridays, Fridays are a day to wind down the week, and plan for next week. Today I think we might start to create a short watch list in the trading room for all HRC Members.
At 9:10 AM ET. Today we will be looking at your trade ideas, technical properties and target zones, a couple of logical entries and a protective stop.
► Must Read Trade Update (AMPE)
On November 30, we shared and in detail the technical properties of AMPE in the Trading Room, Yesterday the profits were about 40% or $700.00, with 1000 shares. November 30 price found support and then consolidated until it found an open door.
► Eyes On The Market
It looks like the SPY is feeling a little pressure and needs to cool its heel. Yesterday’s price action was follow through to Wednesdays little shooting star. (You can see it better in the 2-day chart) Today we are likely to breach the T-Line and possibly test the Lower T-Line. Below $264.00 the recent low $262.71 may get tested.
CBOE Market Volatility Index has presented us with 3 White Soldiers in the daily chart; the three-day chart is catching my eye, I will explain more in the members Trading Room today
Rick’s Swing Trade ideas – MEMBERS ONLY
30-Day Trial • Monthly • Quarterly • Semi-Annual • Annual
Learn how and what we trade: The T-Line • T-Line Bands • Chart Patterns • Support • Resistance • Patterns • Buy Box • Volatility Stops • Price Action • Candlesticks • Profit Zones • Entry Zones • Protective Stops
Investing and Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc. is financial or trading advice. All information is intended for Educational Purposes Only. Terms of Service.
Rick Saddler is not a licensed financial adviser nor does he offer trade recommendations or advice to anyone except for the trading desk of Hit and Run Candlesticks Inc.
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Lottery Ticket Trade
Before I tell you about today’s Free Trade Idea I want to let everyone know this trade is not for everyone. Please keep in mind that all Free Trade Ideas may or May NOT be traded by me and should always be evaluated by you to determine suitability. Today’s idea is a Lottery Ticket Trade.
I used the term lottery ticket because this trade is trying to make big profit on a small move in the the stock FIT. FIT is a volatile and very newsy stock. Today we see nice price pattern with stock trying to recover after a long bottoming pattern. Consider the 22 DEC 7 strike Calls trading for less than $0.25. Remember your maximum loss is what you paid for the trade. A $0.40 gain in the stock could produce a better than 50% gain.
Recently Closed Trades
CSCO 17% • BAC 31% • CREE 48% • WMT 245% • NFLX -40% • STX 42% • 2nd CSCO Trade 30%
Today’s Market Prep Note
I have to admit that I was somewhat surprised that yesterdays FOMC announcement turned out to be such a non-event. The market just yawned and saw nothing to react too. Today is another big news day with some big after the bell earnings reports tossed in for good measure. The Bulls are firmly in control buy at the end of the day yesterday price action suggested a little weariness and maybe a rest in the rally is possible. With all the news the market will have a lot to chew on and potentially react so stay on your toes. In an all bull market it’s very easy to become complacent because you can buy almost anything at anytime and the rising tide makes you money. Guard yourself against complacency by staying focused on the only thing that really matters, Price! The clues will be there if you watch and listen to the market.
Become a Member Today!
30 Day Trial Monthly Semi-Annual Annual
Investing and Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc. is financial or trading advice. All information is intended for Educational Purposes Only. Terms of Service.
Doug Campbell is not a licensed financial adviser, nor does he offer trade recommendations or advice to anyone except for the trading desk of Right Way Options Inc.
STRL Gapped And Strolled Sideways
STRL – Gapped and strolled sideways for about a month now in a tight trading range. Price action seems to be playing well with support, the lower T-Line band, and the V-Stop. I am bullish above $17.20 with a buy zone between $17.20 and $18.40.
At 9:10 AM ET. We will talk about the technical properties of STRL with target zones, a couple of logical entries and a protective stop. We will also be showing our trade plan with risk/reward and expected profits.
►Subscribing Members login: for the Trader Vision Trade Plan
► Must Read Trade Update (LB)
On October 9, we shared and in detail the technical properties of LB in the Trading Room, Yesterday the profits were about 37% or $1590.00, with 100 shares. After the October 5th candle LB followed The Lower T-Line Band and the V-Stops perfectly.
[button_2 color=”orange” align=”center” href=”https://ob124.infusionsoft.com/app/orderForms/Gold-Monthly-Membership-85″ new_window=”Y”]Learn how to use the T-Line Bands and The V-Stop • Cancel Anytime[/button_2]
► Eyes On The Market
The market survived the FOMC! However, you see the intraday price action or even the daily for that matter the trend is still bullish. The SPY has put together six higher lows and highs working to beat the December 4 high. The $25000 magnet in the DOW may be stronger than the bears can handle, just something to think to ponder.
The VXX short-term futures are trending down below the V-Stop and the Lower T-Line Band, (No change from yesterday)
Rick’s Swing Trade ideas – MEMBERS ONLY
30-Day Trial • Monthly • Quarterly • Semi-Annual • Annual
Learn how and what we trade: The T-Line • T-Line Bands • Chart Patterns • Support • Resistance • Patterns • Buy Box • Volatility Stops • Price Action • Candlesticks • Profit Zones • Entry Zones • Protective Stops
Investing and Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc. is financial or trading advice. All information is intended for Educational Purposes Only. Terms of Service.
Rick Saddler is not a licensed financial adviser nor does he offer trade recommendations or advice to anyone except for the trading desk of Hit and Run Candlesticks Inc.
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Big News Day
I have to admit that I was somewhat surprised that yesterdays FOMC announcement turned out to be such a non-event. The market just yawned and saw nothing to react too. Today is another big news day with some big after the bell earnings reports tossed in for good measure. The Bulls are firmly in control buy at the end of the day yesterday price action suggested a little weariness and maybe a rest in the rally is possible. With all the news the market will have a lot to chew on and potentially react so stay on your toes. In an all bull market it’s very easy to become complacent because you can buy almost anything at anytime and the rising tide makes you money. Guard yourself against complacency by staying focused on the only thing that really matters, Price! The clues will be there if you watch and listen to the market.
On the Calendar
We kick off the Thursday Calendar with the weekly Jobless Claims at 8:30 AM Eastern. The after-effects of Hurricane Maria are expected to continue to impact initial claims with a rise to 239k vs. 236k. Also at 8:30 AM is the Retail Sales numbers which are expected to see the core rate rise by a solid 0.4%. To finish the 8:30 AM data dump is Import and Export Prices where forecasters see imports rising 0.7% with exports only increasing 0.3%. At 9:45 we get the PMI Composite a reading above 50 indicates manufacturing growth while a sub-50 print points to a decline. Business Inventories comes out at 10:00 AM and forecasters see a 0.1% draw-down in inventories which is considered bullish. After that, we have a few non-market-moving reports and bound announcements.
The Earnings calendar show just over 30 companies reporting today. There are several big noteworthy reports after the bell such as ADBE, COST, ORCL & JBL.
Action Plan
The strength and longevity of this current rally is a bit spooky but also very impressive. Spooky because the DIA has managed to leave behind gaps 5-days in a row, and impressive in breadth. Once again new records were set in the DIA and the SPY. A 25,000 Dow print is now only 325 points away, and the bulls seem very determined to get it there. However, with the late afternoon selling yesterday across all indexes perhaps a little rest in this bull march is possible. There is a big economic data dump today as well as several big earnings reports after the bell so the market will have a lot reaction worthy events today.
Currently, futures are once again suggesting a gap up in the Dow, and the VIX continues to register little to no fear. There is no denying that the trend is up and the bulls are in control. As a result, I will stay long and continue to look for long trades as long as that condition exists. Long ago I learned the hard way that trading my bias, predicting market turns and fighting the market was a losing business model! However, that does not mean we should be complacent and toss caution to the wind. Stay focused on price, listen to the market and be flexible enough to adapt if a change appears.
Trade Wisely,
Doug
[button_2 color=”green” align=”center” href=”https://youtu.be/vk5ZMfMY62Q”]Morning Market Prep Video[/button_2]
Stick with the plan
Yesterday’s trade suffered a pullback at the open this morning breaking our quick profits winning streak. However, with FOMC decision today I’m am going to stick with the plan thinking it could still pop depending on the news. As I said yesterday if TBT breaks support close the position.
Today I’m looking at trade on CMG. the stock gaped up this morning and is currently pulling back to price support. If support holds consider a weekly contract bull put credit spread. Take a look at the 22 DEC 17 series, selling the 305 Puts and buying the 300 Puts. If CMG falls below $311.50 closing the trade to avoid the risk should be considered.
Recently Closed Trades
CSCO 17% • BAC 31% • CREE 48% • WMT 245% • NFLX -40% • STX 42% • 2nd CSCO Trade 30%
Today’s Market Prep Note
Waiting for the Fed. After this FOMC meeting, we will likely be bidding farewell to Chairman Yellen. As her final act, she will likely leave us with an interest rate increase. That’s not a surprise the FOMC has been projecting that possibility for months now. However, there is speculation she could leave us with a nasty surprise on Wednesday in response to the Tax Reform bill. Many are thinking the FOMC could project additional interest rate increases next year as a result. Currently, they are projecting just three. Any additions could make for an interesting market reaction at tomorrow. Plan accordingly. Also, keep in mind that as the market waits for the official FOMC statement price action normally becomes light and choppy. As we reach out for new all-time highs, it would be wise to keep that in mind as you plan the path forward.
Become a Member Today!
30 Day Trial Monthly Semi-Annual Annual
Investing and Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc. is financial or trading advice. All information is intended for Educational Purposes Only. Terms of Service.
Doug Campbell is not a licensed financial adviser, nor does he offer trade recommendations or advice to anyone except for the trading desk of Right Way Options Inc.
Yesterday Lottery Ticket was a dismal failure as FIT made a full reversal and then gaped down. How rude. Today I’m looking at a nice bottoming pattern with an nice entry signal with upside potential.
